LILONGWE-(MaraviPost)-The country’s Civil Society Organisation on Climate Change (CISONECC) while recommending Tonse government leadership for creation of special account for funds collected under carbon tax,is demanding transparency on the funds usage.
The demand comes after government succumbed to pressure to create the account unlike previously proceeds deposited into account number one.
Recently, finance officials revealed that MK1.2 billion of carbon levy funds was placed in the consolidated account number one contrary to an earlier commitment to channel the same towards environmental protection.
But in the 2020/2021 fiscal year, the Ministry of Finance has committed to make the Malawi Environmental Protection Authority–MEPA a custodian of the three billion kwacha projected to be collected as carbon tax.
Chairperson of parliamentary committee on Natural Resources and Climate Change, Welani Chilenga has since commended Finance Minister, Felix Mlusu for the move saying the levy will now serve its intended purpose.
CISONECC National Coordinator Julius Ng;’oma told the Maravi Post that the move was his grouping’s demand.
Ng’oma says stakeholders want to be in the known on exact usage of the funds and who will manage the proceeds.
” We commend Government for taking that decision to create a special account for carbon tax for transparency sake. We hope the stakeholders will be made aware once this special account is created and how the account will managed.
“The Government may still need to elaborate on what happens to the funds being collected during the transition period (as we wait for the creation of the special account), especially where will the funds be deposited and what kind of activities will the funds be used for,” says Ng’oma.
He added, “Civil society and other stakeholders demands to be made aware on this for transparency as we know that the Carbon Tax is still being collected through fuel levy.
“We also demand that terms of reference be developed on collection, utilization and management of the collected funds as a way of ensuring there is transparency on management of carbon tax and that the funds are no longer subjected to abuse or missallocation such as support towards activities that are not climate or environmental related. Clear linkages will need to be created between the carbon tax management and the climate change fund”.